China’s CATL looks to raise $9 bln to expand lithium-ion battery production

A sign of Chinese battery maker Contemporary Amperex Technology Ltd (CATL) is seen on its building in Ningde, Fujian province, China August 8, 2018. REUTERS/Stringer

SHANGHAI, Aug 13 (Reuters) – Chinese battery giant CATL (300750.SZ) said it was planning a private share placement to raise up to 58.2 billion yuan ($8.98 billion) to fund six projects aimed at boosting its production capacity of lithium-ion batteries.

The massive fundraising comes as the Ningdo-based firm – formally Contemporary Amperex Technology Co Ltd – expands battery manufacturing capacity around China and in Germany.

It will also be used to boost capital, CATL said in a statement late on Thursday.

As global auto industry accelerates transformation towards electrification, CATL is supplying electric vehicle batteries to a swathe of automakers including Tesla Inc (TSLA.O), Volkswagen AG (VOWG_p.DE) and Geely (GEELY.UL). It is competing with Japan’s Panasonic (6752.T) and South Korean LG Chem (051910.KS).

CATL currently has a market capitalisation of over 1.1 trillion yuan ($169.85 billion).

(This story corrects to “1.1 trillion yuan” from “1.1 billion yuan” in paragraph 5)

($1 = 6.4764 Chinese yuan)

Reporting by Brenda Goh and Yilei Sun; Editing by Christopher Cushing and Himani Sarkar

Our Standards: The Thomson Reuters Trust Principles.

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